U.K. House Prices Fall for Third Month Amid London Distractions

Sept. 17 (Bloomberg) -- U.K. home sellers cut asking prices
for a third month in September as the property market failed to
cope with the “distractions” of the London Olympics, according
to Rightmove Plc.

Average asking prices in England and Wales fell 0.6 percent
after declining 2.4 percent in August, the operator of Britain’s
biggest property website said in an e-mailed report in London
today. From a year earlier, values were up 0.7 percent to an
average 234,858 pounds ($381,000).

“Summer sellers have had some very stiff competition, not
only from competing sellers chopping their prices but also from
the Olympics extravaganza which has been more compelling for
many than viewing property,” Miles Shipside, commercial
director of Rightmove, said in the statement.

Mortgage lender Halifax said last week that the housing
market is continuing to “tread water” as the economy struggles
to recover from a recession and prospective buyers face a
challenge in raising a deposit. It reported a 0.4 percent drop
in prices in August, while the Royal Institution of Chartered
Surveyors said gauges continue to point to a “sluggish”
property market.

Nationally, eight out of the 10 regions in England and
Wales tracked by Rightmove posted monthly price drops. House
prices in London rose 0.3 percent in September from August and
were up 6.6 percent from a year earlier. Monthly gains in the
capital were led by Enfield, Redbridge and Ealing. The biggest
declines were in Kingston, Richmond and Islington.

In an analysis of national prices since the crisis at
Northern Rock Plc five years ago, Rightmove said home prices
were little changed. That compares with a 55 percent surge in
values in the previous five years. Still, within the price
“standstill” since 2007, Rightmove said the “winners”
include homeowners in London, who have seen values surge 18.7
percent.